Procurement Best Practices

Course details

The Procurement function has developed from a simple administrative function to a fully fledged strategic business unit. No longer is it sufficient to simply turn requisitions into orders and then await the delivery of the goods or services. It therefore imperative for Procurement to constantly deliver value to the organisation by delivering products and services that contributes to the well-being of the organisation.

In order to do this, Best Practices have to be implemented on four levels:

• Strategic
• Tactical
• Operational
• Contingency

This seminar will address the necessary conditions at all four levels for those delegates who want to implement high-performing Procurement functions.

Objectives

Participants attending the program will:

• Understand the evolution in Procurement
• Understand the evolution in Procurement
• Discuss the inputs, outputs and processes of the system
• Develop meaningful performance measurements
• Learn the necessary conditions to be taken on all four levels

Training Methodology

Participants will increase competencies through a variety of instructional methods including lecture by an experienced practitioner and consultant, exercises, review published articles, and group discussions covering current practices and their relationship to the implementation of new concepts.

Organisational Impact

The organisation will benefit by:

• The ability to deliver real value in a shorter time
• Reduce the number of non-value adding activities
• Improved relations between personnel, customers and suppliers
• Reduction in total cost of ownership
• Improved supplier performance

Personal Impact

Attendees will gain by participation in this program as a result of:

• Increased skill sets in all phases of strategic procurement
• Greater ability to lead, plan, and manage the procurement process
• A greater sense of professionalism and being able to contribute to the organisation’s strategic objectives
• Increased Knowledge about Key Performance Indicators
• Increased recognition by the organization due to improved performance

SEMINAR OUTLINE 

DAY 1

Seeing Procurement as a Dynamic, Interactive System

• The System Approach vs. the traditional Functional Approach
• What is the goal of Procurement?
• Developing the Strategic Procurement Plan
• An overview of the procurement process
• Procurement as part of the Supply Chain

DAY 2

Developing the Strategic Procurement Decisions

• Make/buy decision
• Vertical integration
• Alliances and partnerships
• Inter-company trade
• Reciprocity and counter trade
• Supplier strategy
• The coordination strategy
• The Purchasing organisation

DAY 3

Implementing the Tactical Procurement Decisions

• Supplier involvement
• Value analysis
• Quality Assurance
• Supplier selection
• Supplier rating and ranking
• Contract management
• IT systems and e-Procurement
• Policies and procedures
• Staffing the Procurement Department

DAY 4

Dealing with Operational Procurement Decisions

• Selecting the most appropriate ordering process
• Addressing quality issues
• Follow up
• Overdue orders
• Expediting
• The payment process
• Reducing the cost of procurement: small value purchase orders

DAY 5

Contingency Procurement Decisions

• The different contingency situations
• Contingency management
• Procurement Performance Measurement
• Spend analysis
• Total cost of ownership
• Supplier performance measurement